The U.S. Department of Energy (DOE) has announced the sale of 1 million barrels (42 million gallons) of gasoline from the Northeast Gasoline Supply Reserve (NGSR) aimed at alleviating gasoline prices as Americans gear up for the summer driving season and ahead of U.S. elections this fall.
“The Biden-Harris Administration is laser-focused on lowering prices at the pump for American families, especially as drivers hit the road for summer driving season,” said U.S. Secretary of Energy Jennifer M. Granholm.
By releasing this reserve between Memorial Day and July 4th, the administration aims to ensure a steady fuel supply in the Northeast during a peak travel period.
The gasoline will be sold in increments of 100,000 barrels to encourage competitive bidding among retailers and terminal operators.
The DOE has designated storage sites in Port Reading, NJ (900,000 barrels) and South Portland, ME (98,824 barrels) for this release.
Successful bidders will receive their allocations by June 30, 2024, ensuring ample supply ahead of the July 4th holiday.
Bids are due by 11:00 a.m. Central Time on May 28, 2024, with revenues from the sale directed to the U.S. Treasury.
This initiative is part of a broader strategy to manage the country’s petroleum reserves effectively and ensure energy security.
By introducing nearly 1 million barrels of gasoline into the commercial market, the DOE hopes to stabilize prices and provide relief to consumers.
The Department of Energy established in 2014 the Northeast Gasoline Supply Reserve (NGSR)—the first federal, regional, refined petroleum product reserve containing gasoline—following the 2012 Superstorm Sandy in the northeastern United States.
The NGSR holds one million barrels of gasoline, including 700,000 barrels located in the New York Harbor area, 200,000 barrels in the Boston area, and 100,000 barrels in South Portland, Maine.
Source: Oilprice.com